Buying Apple Stock? 5 Things to Consider First
With Apple's brand recognition and innovative products, it's no surprise that many people are interested in adding AAPL to their portfolio.
But does Apple stock still make sense as an investment? That all depends on your financial goals, current assets, and risk tolerance. Here are five things you need to consider before you buy Apple stock:
Apple Stock's History
By any standard, Apple's growth as a company has been phenomenal. It was the first company to reach a $1 trillion market cap in 2018 and crossed the $3 trillion mark in 2021.
Research Apple Stock's Fundamentals
A great place to start your research is Apple's investor relations site. You can find all of their SEC filings, including the quarterly and annual reports. These reports include an overview of the business, financial statements, disclosures of market risk, and much more.
Does Apple Fit Your Investing Goals?
For example, if you have a short investment horizon, investing in individual stocks may not be the best fit. Over the long term, stocks have proven to provide reliable returns, but there is much more volatility in the short term.
How Much Can You Afford to Invest in Apple?
It would help if you considered how much money you have to invest and how big of a part you want Apple to play in your portfolio. As a rule of thumb, stocks should be considered long-term investments. You should only invest money you won't need in the short-term into the stock market.
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